Corporate AI Risks Unclear Absent SEC Aid, Agency Advisers Say

An SEC advisory body is eyeing how the agency could compel companies to disclose details on their use of artificial intelligence.

The Securities and Exchange Commission should issue guidance directing companies to define AI and disclose how they deploy the technology and how their boards oversee it, the agency’s Investor Advisory Committee said in a Nov. 18 draft recommendation posted online Thursday. The non-binding proposal doesn’t mention the Trump administration’s push to stop state AI rules for companies.

The draft recommendation stems in part from a 2024 Deloitte and the USC Marshall School of Business report finding companies’ level of ...